if not, they would shrink pentagon spending by 7.9% and domidwesting spending by 5.3% and medicare a 2% reduction. >> i believe they should pass a smaller package of spending cuts and tax reforms that would delay the economically damaging affects of the sequester for a few more mots until congress finds a way. >> reporter: the president wants to raise more money by ending tax loopholes, but republicans want deeper entitlement cuts. >> if we're going to connect with the american people, it's important that they see not only that we're serious about solving our debt problems. >> a studdie by george mason university estimated 448,000 jobs could be affected in d.c., maryland, and virginia. for months, defense contractors have pleaded for action. >> we would hope that congress would meet their obligations to us and to the public. >> reporter: virginia congressman frank wolf wrote to the president and speaker arguing the bipartisan plan would avoid sequestration and stop its widespread affect on jobs. >> sequestration will hurt not only the defense side bow the non-defense side. my committ